Europe needs $355 bln for 5G rollout, industrial study says
25/03/2021 05:00
By Foo Yun Chee
BRUSSELS, March 25 (Reuters) - Europe needs to pump 300
billion euros ($355 billion) into its telecoms infrastructure by
2025 if it wants to roll out super fast 5G across the 27-country
bloc to boost economic growth and tap the potential of the
technology, a report said on Thursday.
The study by consulting firm BCG, commissioned by telecoms
lobbying group ETNO, comes as the European Union pins its hopes
on 5G to lift it out of a COVID-19 pandemic-induced recession
and take the lead in internet-connected devices.
But EU telecoms operators have been reluctant to invest in
5G networks, which could support smart factories and
self-driving cars, because of the massive outlay, while they say
plans to scale up via mergers to take on these costly projects
have been stymied by tough EU antitrust rules.
"150 billion euros is still needed to achieve a full-5G
scenario in Europe, while an additional 150 billion euros is
required to finish upgrading fixed infrastructure to gigabit
speeds," the report said.
Delays in auctioning of 5G spectrum – airwaves necessary for
operators to start offering commercial 5G – due to governments
shifting focus to counter the pandemic have also disappointed
the industry.
The study proposed several measures that governments and
regulators could implement to boost the telecoms industry.
"One such step is pursuing new ownership models involving
voluntary infrastructure sharing, which can allow faster
roll-out, reduced overall environmental impact, and increased
knowledge transfer among partners," it said.
Loosening rules to allow telecoms providers to cooperate and
co-invest or to split infrastructure construction from
telecommunications services businesses were also some of the
suggestions.
The study also called for operators to be allowed to
monetise data traffic on their networks to catch up with rivals
such as Google GOOGL.O , Facebook FB.O , Microsoft MSFT.O
and other tech giants.
($1 = 0.8455 euros)
(Reporting by Foo Yun Chee. Editing by Mark Potter)
((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters
Messaging: foo.yunchee.thomsonreuters.com@reuters.net))